The battle of the dollar stores is taking a new turn, Dollar General is throwing down the gauntlet in its attempt to buy Family Dollar. Dollar General has launched a hostile takeover bid for its dollar store rival, attempting to thwart Family Dollar’s planned merger with Dollar Tree. There is one key sticking point in a potential Dollar General-Family Dollar deal? Zone pricing.
Family Dollar has stated that its prices are lower in places where there are Dollar General stores nearby. More than 1,500 – or about 20% – of Family Dollar’s stores “are in zones where pricing is based solely on the presence of local Dollar General stores,” Family Dollar said last week, “and thousands more are in zones where pricing is based on both Dollar General and Wal-Mart stores nearby.” Therefore, there is a “serious risk that the FTC will take the position that Family Dollar’s pricing policies would immediately lead to higher prices in thousands of locations if Dollar General were no longer an independent competitor.” So make sure you are taking advantage of savings by following The Nikolai Nuthouse on some of the best deals weekly!